Concentrated Global Equity Fund

Investment involves risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Overview

Strategy

Fund Summary

The T. Rowe Price Concentrated Global Equity Fund is an active, style-balanced, high-conviction and risk-managed global equity strategy that aims to provide long-term capital appreciation.

Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

31-Aug-2022 - Randal Jenneke, Head of Australian Equities,

The Australian equity market rose in August, building on July gains and outperforming its developed and emerging markets peers in local currency terms. Concerns over a slowing global economy and demand destruction saw oil prices pull back. Iron ore prices also fell as China’s zero-COVID policy continued to weigh negatively on economic activity and therefore demand for iron ore. Within the portfolio, our holding in a speciality lithium chemicals company continued to see realised prices rise and demand remained strong. Consequently, the company was a strong performer and in our view is well placed, through greenfield and brownfield expansions, to capitalise on the strong demand for electric vehicles. Conversely, our holding in a pizza chain operator held back returns; its shares declined on the back of a weaker-than-expected full-year profit result, largely due to disappointing results from its European business. With significant cost inflation in these markets, we expect the business to go through a tough period for earnings. Nevertheless, we think the company will manage its way through these issues much better than its competition, continue to take market share, and come out the other side in much better shape.

30-Jun-2022 - Randal Jenneke, Head of Australian Equities,

We initiated in Telstra,�a large domestic telecommunications player which builds and operates telecommunications networks and markets voice, mobile, internet access, and pay television. In our view, the industry structure in the Australian mobile market and to a lesser extent, in fixed lines, has improved since 2020 and we believe Telstra will continue to benefit most as the incumbent. As we move on from mobile price wars that began in 2018, rational mobile pricing (i.e. price rises) will in our view be the key positive swing factor to higher earnings growth in the medium term.
We eliminated the position in SEEK, a provider of online employment marketplaces.� We believe the attractiveness of the business has diminished for two reasons. First, it will be cycling a tough prior corresponding period and the employment cycle should turn from a tailwind to a headwind. Secondly, valuation is at a high premium versus both the benchmark and its long-term average.
We sold out of our holding in REA Group. We have turned more pessimistic on the stock on expectations that the listings cycle will roll over, which in turn will drag on earnings growth. It is also expensive from a valuation standpoint relative to its historical premium versus the index.
We eliminated our position in Harvey Norman, the large retailer of furniture, bedding, computers, and consumer electrical products. The outlook for earnings has weakened in our view, partly based on our anticipation for weaker discretionary consumer spending as we move into a later stage of the economic cycle.
We topped up our existing position in Domino's Pizza. The stock has struggled in recent months, but we believe that some of the issues holding back sentiment (including post-COVID weakness in Japan and Europe and risks to near-term store openings) are largely temporary and that the company has attractive long duration growth potential.
We increased our existing position in BHP. One of the world's largest miners by market capitalization, BHP provides exposure to what we believe to be some of the highest quality mining assets in the industry, combined with excellent management.
Over the quarter, we added to our existing position in industrial property specialist Goodman Group, whose share price had fallen sharply on news from Amazon that it had too much warehouse space following expansion during the pandemic. The news led several global industrial names to sell off, including Goodman. However, the company's actual exposure to Amazon remains quite low, as is its exposure to the U.S. in general.
Although the IT sector as a whole sold off sharply over the quarter, Computershare was a notable exception. As noted earlier in this report, its shares soared over the period, and we took the opportunity to book profits and manage the size of our position.� The company is a global provider of services in share registry, employee equity plans, corporate trust, stakeholder communications, and corporate governance, and we retain our view that the business generates high free cashflow and has good and improving return on equity.

The Management Fee for the T. Rowe Price Concentrated Global Equity Fund – I class is 0.85% p.a. and the Indirect Cost is 0.00% p.a. – Full details of other fees and charges are available within the Fund's Product Disclosure Statement and Reference Guide.

Benchmark Data Source: MSCI. MSCI index returns are shown with reinvestment of dividends after the deduction of withholding taxes. MSCI and its affiliates and third party sources and providers (collectively, “MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. Historical MSCI data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

The specific securities identified and described in this website do not represent all of the securities purchased or sold for this fund. This information is not intended to be a recommendation to take any particular investment action and is subject to change. No assumption should be made that the securities identified were or will be profitable.

Unless otherwise specified, all fund ratings, awards and data are as of 30-Nov-2024 and sourced from T. Rowe Price.

Source for fund performance: T. Rowe Price. Net-of-fees performance is based on end-of-month redemption prices after the deduction of fees and expenses and the reinvestment of all distributions. Gross-of-fees performance is the net return with fees and expenses added back. Figures include changes in principal value. Investment return and principal value will vary, and an account may be worth more or less at terminationthan at inception.

Source for Sector Diversification: T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.

The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc, ("MSCI") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and is licensed for use by T. Rowe Price. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or theresults to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any or such standard or classification, Without limiting any or the foregoing, in no event shall MSCI, S&P, any of their affiliates or any thirdparty involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298 AFSL 240975) is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Stock Exchange (ASX:EQT). Equity Trustees and T. Rowe Price Australia Limited ("TRPAU") (ABN: 13 620 668 895 and AFSL: 503741) are, respectively, the responsible entity and investment manager of the T. Rowe Price Australian Unit Trusts. A Target Market Determination for each T. Rowe Price Australian Unit Trust (or class of units in a Trust) is available here (http://www.eqt.com.au/insto). It describes who the financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where Equity Trustees Limited, the responsible entity of the T. Rowe Price Australian Unit Trusts may need to review the Target Market Determination for the financial product.

For Wholesale Clients only.

Past performance is not a reliable indicator of future performance. The price of any fund may go up or down. Investment involves risk including a possible loss to the principal amount invested. For general information purposes only, does not take into account the investment objectives, financial situation or needs of any particular investor. For further details, please refer to each fund's product disclosure statement and reference guide which are available from Equity Trustees (www.eqt.com.au/insto) or TRPAU (www.troweprice.com.au).

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

LRN 202210-2557614

Risks

Typical Investor